On June 6, 2023, the excise and taxation department in Lahore released a notice regarding significant updates to the token tax and transfer fees in Punjab. These changes will have an impact on vehicle owners and those involved in the transfer of vehicles. Let’s dive into the details of these revisions and understand how they will affect motorists in the region.
Token Tax Based on CC
One of the notable changes highlighted in the notice is the shift from a fixed seat-based token tax to a system based on the engine’s cubic capacity (CC). The document mentioned that previously, private vehicle owners paid a token tax of Rs. 2500 per seat, but it is important to mention that this is a wrong information because the Token Tax for private cars is always CC wise. Per seat tax was only for commercial vehicles. It means there is a type by the Excise office.
Transfer Fee Hike
Effective from July 1, 2023, transfer fees in Punjab will experience an increase. Motorcycle and scooter owners, who were previously paying a transfer fee of Rs. 150, will now be required to pay Rs. 500. This adjustment aims to align the transfer fee with the current market value and administrative costs involved in transferring ownership. Similarly, commercial vehicle owners will see an increase in transfer fees, with the amount rising to Rs. 5000 from the previous rate of Rs. 4000.
| CATEGORY | Transfer Fee W.E.F 01.07.23 | |
| Till 30.06.23 | From 01.07.23 | |
| Motorcycle, Scooter | 150 | 500 |
| Upto 1000CC/Rickshaw | 1,200 | 2,500 |
| 1000-1800 CC | 2,000 | 5,000 |
| Above 1800 CC | 3,000 | 10,000 |
| Commercial | 4,000 | 5,000 |
Implications for Vehicle Owners
These revisions in token tax and transfer fees will have implications for vehicle owners across Punjab. It is important for motorists to be aware of these changes to avoid any potential penalties or misunderstandings. It is advisable to consult with the excise and taxation department or relevant authorities to ensure compliance with the revised regulations.
What is your take on new taxes under Punjab Budget 2023? Share your thoughts with us in the comments section.
